Renovated 28-Unit Apartment
New
For Sale
$8,900,000
2263 Sacramento St, San Francisco, CA 94115
Furnished apartments offer dual short-term and long-term operating programs with resident support and updated building systems.
Property Size13,500 SF
Days on Market5
Property Features for 2263 Sacramento St
General Information
Standard status
Active
Size
13,500 SF
Property subtype
Multifamily
Amenities
Prime Pacific Heights Location: Situated at 2263 Sacramento Street right next to the vibrant Fillmore Street corridor, offering premier access to neighborhood dining, shopping, and culture.
Positioned at the forefront of the city's powerful economic and cultural resurgence, driven by surging innovation, rebounding tourism, and renewed investor confidence.
Capitalize on the double-digit rent growth in the San Francisco Market- 19% top line revenue growth between 2024 and 2025, and trending to an additional 12.5% in 2026.
Compelling Pricing and Yield: Offered at an attractive price per foot (PPF) paired with a strong 7.2% cap rate, providing an immediate, high-yielding cash flow return in a traditionally low-cap-rate market.
Continuity of Professional Management: Both short-term operator Kasa (managing 17 units as Kasa The Addison) and long-term operator ReListo (managing 11 units) are in place and would like to stay on for a seamless transition.
Turnkey Operations in Place: Features a dedicated, experienced onsite property manager who handles day-to-day operations and wants to stay on.
Robust Financials & Balanced Performance: Backed by a proven dual-income structure generating over $1.5M in annual gross income, blending stable long-term lease cash flow (ReListo) with high-yield short-term hospitality upside (Kasa) across 28 total units.
Building Details
Building Size
13,500 SF
Units
28
Listing Agency:
Marcus & Millichap - Encino
Listed By:
Ryan Rothstein-Serling · License #License(s): CA: 01920619, CA: 0204082
(818) 212-2725
Source:
Marcusmillichap
Added: Sep 16
Last Checked: Sep 20 at 5:14AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap - Encino
Investment Insights
Based on property information with market context.
The Addison is a 28-unit apartment property at 2263 Sacramento Street in San Francisco’s Pacific Heights neighborhood. A comprehensive renovation completed between 2018 and 2022 updated the structural and mechanical systems. Property features include hardwood flooring, fire sprinklers, new plumbing and electrical systems, radiant floor heating, keyless entry, private baths, furnished units, and outdoor common areas with tenant decks and a rear barbecue area.
The operating model combines 17 short-term units managed by Kasa with 11 long-term apartments managed by ReListo. The short-term residences include in-unit kitchenettes and laundry, while upper-level units feature two-story layouts and skylights. Short-term occupancy is 90%, and the long-term apartments are reported as 100% occupied. A resident manager lives on-site and wishes to remain, with 24-hour guest support also in place.
The operating model combines 17 short-term units managed by Kasa with 11 long-term apartments managed by ReListo. The short-term residences include in-unit kitchenettes and laundry, while upper-level units feature two-story layouts and skylights. Short-term occupancy is 90%, and the long-term apartments are reported as 100% occupied. A resident manager lives on-site and wishes to remain, with 24-hour guest support also in place.
Key Highlights
- 28‑unit apartment property in Pacific Heights at 2263 Sacramento Street
- Renovation completed between 2018 and 2022
- 17 short‑term units operated by Kasa with 90% occupancy
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$438,305
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.92%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$8,766,100
$8.8M
Cap Rate 7%
$6,261,500
$6.3M
Cap Rate 9%
$4,870,056
$4.9M
Market Conditions
NOI Build-Up for 13,500 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$850.5K $63.00/SF
− Vacancy
−$53.6K −$3.97/SF
EGI
$796.9K $59.03/SF
− OpEx
−$358.6K −$26.56/SF
NOI
$438.3K $32.47/SF
Area
San Francisco, CA
Vacancy
6.30%
Lease Rate
$63.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$8,766,100
Cap Rate 7%
$6,261,500
Cap Rate 9%
$4,870,056
Alternative Uses
Best Use
Apartment 5plus
$6.26M
$5.48M – $7.31M
NOI $438,305 @ 7.0% cap · market cap 4.92%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$65.94M
$57.70M – $76.93M
NOI $4,615,937 @ 7.0% cap · market cap 51.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
12,406
Businesses Nearby
Explore this area
Business Placement
Demographics for 94115, CA
35,853
Population
19,312
Households
1.9
Avg Household Size
38
Median Age
74%
College-Educated
96%
High-School Grad
1.1 sq mi
ZIP Area
32,594
Density / Sq Mi
$154,264
Median Household Income
$103,538
Median Earnings
$2,380
Median Rent
$1,684,100
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - Furnished apartments offer dual short-term and long-term operating programs with resident support and updated building systems.
Where is this apartment building located?
The property is located at 2263 Sacramento St San Francisco, CA.
What is the asking price?
The asking price for this property is $8,900,000.
What are key features of this property?
This property features: 28‑unit apartment property in Pacific Heights at 2263 Sacramento Street; Renovation completed between 2018 and 2022; 17 short‑term units operated by Kasa with 90% occupancy
